Bull Power

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Bull Power

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Bull Power determines the strength of buyers (bulls) vs. sellers (bears) as it measures the difference between the highest price and a 13-period EMA. If the Bull Power indicator is above zero (High > EMA), it means buyers were able to keep the highest price above the EMA, and that’s positive. Buy signal is generated when the Bulls Power oscillator moves above zero.  If the Bull Power indicator is below zero (High < EMA), it means sellers were able to drive price below the EMA, and that’s negative.  Bull Power has a base value of 0 and has no lower or upper limit.

Divergences between bull power and prices indicate the best trading opportunities. This indicator is used together with a trend indicator (mostly Moving Average).   If trend indicator is down-directed and the Bulls Power index is above zero, but falling, it is a signal to sell.